After graduating from college with a bachelor of business administration, you begin an ambitious plan to retire in 27.00 years. To build up your retirement fund, you will make quarterly payments into a mutual fund that on average will pay 12.68% APR compounded quarterly. To get you started, a relative gives you a graduation gift of $3,428.00.
Once retired, you plan on moving your investment to a money market fund that will pay 6.00% APR with monthly compounding. As a young retiree, you believe you will live for 34.00 more years and will make monthly withdrawals of $10,923.00. (YOUR WITHDRAWALS ARE AT THE BEGINNING OF THE MONTH!!!!) To meet your retirement needs, what quarterly payment should you make?